By:  Pickett, et al. (Senate Sponsor - Lucio)                   H.J.R. No. 28 
	(In the Senate - Received from the House April 30, 2003; 
May 7, 2003, read first time and referred to Committee on Finance; 
May 13, 2003, rereferred to Committee on Infrastructure 
Development and Security; May 24, 2003, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas 7, Nays 
0; May 24, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.J.R. No. 28                                   By:  Ogden


HOUSE JOINT RESOLUTION


proposing a constitutional amendment providing for authorization 
of the borrowing of money on a short-term basis by a state 
transportation agency for transportation-related projects, and the 
issuance of bonds and other public securities secured by the state 
highway fund.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Article III, Texas Constitution, is amended by 
adding Sections 49-m and 49-n to read as follows:
	Sec. 49-m.  (a)  The legislature, by law, may authorize the 
Texas Transportation Commission or its successor to authorize the 
Texas Department of Transportation or its successor to issue notes 
or borrow money from any source to carry out the functions of the 
department.
	(b)  Notes issued or a loan obtained under this section may 
not have a term of more than two years.  The legislature may 
appropriate money dedicated by Sections 7-a and 7-b, Article VIII, 
of this constitution for the purpose of paying a debt created by the 
notes or loan.
	Sec. 49-n.  (a)  To fund highway improvement projects, the 
legislature may authorize the Texas Transportation Commission or 
its successor to issue bonds and other public securities and enter 
into bond enhancement agreements that are payable from revenue 
deposited to the credit of the state highway fund.
	(b)  Proceeds from the sale of bonds and other public 
securities issued under this section may only be used to provide:
		(1)  funding for projects that, as determined by the 
Texas Transportation Commission or its successor:
			(A)  allow the Texas Department of Transportation 
or its successor to draw down additional federal-aid highway funds;
			(B)  are eligible for expedited contracting under 
Subchapter C, Chapter 223, Transportation Code;
			(C)  facilitate, for the purpose of reducing 
unemployment or underemployment, the retention of businesses in 
this state or the ability to provide an incentive for new businesses 
to locate in this state;
			(D)  reduce accidents or correct or improve 
hazardous locations on the state highway system; or
			(E)  are included in the Texas Highway Trunk 
System; or             
		(2)  short-term financing of turnpike project costs 
that are incurred before the project is open to traffic and begins 
generating revenue, if the commission determines that issuing 
short-term bonds will reduce total project costs.
	(c)  In this section, "Texas Highway Trunk System" means a 
rural network of four-lane or better divided roadways that will 
serve as a principal connector of all Texas cities with over 20,000 
population, as well as major ports and points of entry.
	(d)  In each fiscal year in which amounts become due under 
the bonds, other public securities, or agreements authorized by 
this section, there is appropriate from the revenue deposited to 
the credit of the state highway fund in that fiscal year an amount 
that is sufficient to pay:
		(1)  the principal of and interest on the bonds or other 
public securities that mature or become due during the fiscal year; 
and
		(2)  any cost related to the bonds and other public 
securities, including payments under bond enhancement agreements, 
that becomes due during that fiscal year.
	(e)  Any dedication or appropriation of revenue to the credit 
of the state highway fund may not be modified so as to impair any 
outstanding bonds or other public securities secured by a pledge of 
that revenue unless provisions have been made for a full discharge 
of those securities.
	SECTION 2.  This proposed constitutional amendment shall be 
submitted to the voters at an election to be held November 4, 2003.  
The ballot shall be printed to permit voting for or against the 
proposition:  "The constitutional amendment providing for 
authorization of the issuing of notes or the borrowing of money on a 
short-term basis by a state transportation agency for 
transportation-related projects, and the issuance of bonds and 
other public securities secured by the state highway fund."



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